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State Tax Payment Plans Available

Released: February 4, 2010

SACRAMENTO – The Franchise Tax Board (FTB) today advised taxpayers dealing with income tax liabilities to contact FTB for assistance if they are unable to pay by April 15.

For people experiencing a financial hardship and cannot pay what they owe, FTB specialists can establish payment plans, grant temporary relief from state tax liens, or, in some cases, delay collection actions. FTB generally approves installment payment requests if the balance owed is less than $25,000 and can be paid within 60 months.

FTB can generally grant relief from state tax liens within two weeks for financially distressed homeowners trying to sell or refinance their homes. When a home sells for less than the loan balance, FTB can sometimes remove its tax lien from the property to allow the homeowner to complete the sale. Tax liens typically must be paid before a real estate escrow can close. The tax lien remains in effect on any other property the taxpayer currently holds or later acquires.

FTB can help people refinancing or modifying an existing home loan. Homeowners can request that FTB allow the new or modified loan to have priority over the tax lien. This allows prior home loans to be refinanced or modified without first having to pay the lien.

More information is available at FTB’s website, ftb.ca.gov, including ways to help taxpayers resolve their accounts through installment agreement requests. For lien information, look under the “Bills and Notices” tab and then under the Earnings Withholding and Collections Action section, select: Individuals - Liens.

Taxpayers who cannot resolve their accounts online should call the phone number listed on their billing notices. Those without Internet service may request an installment agreement payment plan by calling FTB at 800.689.4776, Monday through Friday, between 8 a.m. and 5 p.m.